Democrats Threaten To Break Up Any United-American Merger Once Trump Leaves Office

Democrats in Congress are threatening to break up any United Airlines merger with American Airlines, once President Trump has left office.

The ‘Monopoly Busters Caucus’ is made up of 19 largely left-leaning members of the U.S. House of Representatives, including Congresswomen Rashida Tlaib, Alexandria Ocasio-Cortez, Pramila Jayapal, and Congressional Progressive Caucus Chair Greg Casar. They’ve declared that the Trump administration could sign off on a merger – but it can still be broken up later.

  • There is no statute of limitations for a federal challenge to completed merger. Department of Justice review under Hart-Scott-Rodino, and then not taking action against a merger, does not create antitrust immunity. They aren’t formally ‘clearing’ the merger.

  • They can break up a merger later. If a completed merger violates the antitrust laws, they can sue to unwind it and divest the acquired company. That’s happened.

  • But Congress can’t do it, they don’t have standing. It would be the Department of Justice (or state attorney generals or private plaintiffs who can demonstrate standing). That’s not true for all antitrust claims. For instance, Clayton Act private party treble damages actions have a four year limitations period.

United and American together would control around 40% of domestic capacity. That’s the kind of combination that a future administration could sue to break up. Even if the Trump administration let a United-American merger close, that wouldn’t prevent President Ocasio-Cortez from suing to break it up. And a coalition of state attorneys general who didn’t sign off on it in a settlement could still sue to block it later, even if they didn’t do so prior to deal close.

It would therefore be crucial to get an actual Tunney Act consent judgment from the Department of Justice, not just let the review period for the deal expire. A court has to review that agreement to determine that it is in the public interest. But that will bar them from relitigating claims that should have come up prior to merger close. The next administration can’t just change their mind on the deal. That might not foreclose all future antitrust litigation, based on future conduct or consequences. And a Department of Justice settlement wouldn’t bar non-settling states or private plaintiffs from suing.

There would also be foreign review of the deal. American Airlines is far more domestic-focused than United is, but several governments will seek to have a say in the deal, and United would need not just their own legal teams and lobbyists but probably pressure by the Trump administration to get signoff.

  • London Heathrow. The American Airlines joint venture with Briitsh Airways required remedy slots for London – Dallas, Boston, Miami, Chicago and New York. United was even given London – Boston in 2021. The original combination of US Airways and American required British signoff, and releasing slots because of concern over London Heathrow – Philadelphia.

    The top airlines at Heathrow are: British Airways and IAG (~54%); Lufthansa Group (6.5%); Virgin Atlantic (~5%); American (3.5%); United (3%); SAS (2%); Delta (1.5%).

    One can imagine a United-American deal making London Heathrow more competitive to the extent that the pair wound up in a joint venture with Lufthansa Group and not British Airways parent IAG – and yet the U.K. government would still require slot divestitures at least in order to approve the deal.

  • Transatlantic Joint Venture review. United is in a joint venture with Air Canada and Lufthansa Group across the Atlantic. That allows coordinating schedules and prices and sharing revenue. American has its similar deal with British Airways, Iberia, Aer Lingus, and Finnair. They won’t be able to keep both. Presumably United keeps its deal, but that deal itself gets re-opened for review adding in the capacity of American Airlines (such as it is). That means EU signoff is needed.

  • Brazil. American is the largest U.S. carrier in South America, and especially Brazil, which is likely to seek review as well as of relationships with Gol and Azul.

  • Japan. American has a joint venture with Japan Airlines. United has one with ANA. Both U.S. carriers operate to Tokyo Haneda with limited slots there. Haneda is an issue for the Department of Transportation and other airlines will seek to have those slots re-allocated (possibly even Alaska Airlines, especially if it loses its American Airlines partnership out of this – and American’s capacity moving to Star Alliance would be a stake in the heart of oneworld).

  • Australia/New Zealand. United has a joint venture with Air New Zealand, while American has one with Qantas. Both cannot be kept. This deal would likely re-open review of those agreements, and give a lever to both governments.

  • Canada. United has a transborder joint venture with Air Canada. Adding American Airlines flights into the mix, adding to the total portion of flying between the U.S. and Canada will re-open that for review. And U.S. tensions with its ’51st State’ will play into that.

  • Mexico. While United-American wouldn’t dominate the market, and Mexico has supported Aeromexico-Delta, U.S. pushback over that alliance complaining about anticompetitive moves by the Mexican government limiting access to Mexico City could be met by indignation about anticompetitive positions by the U.S. government. At the same time, Mexico has acquiesced to U.S. military involvement in suppressing cartels – it’s hard to imagine the Trump administration couldn’t impose this if they wanted to.

American’s partnership with Alaska probably wouldn’t survive given the amount of capacity United and American together would have in the domestic market. They’d probably have to spin off American’s position at Chicago O’Hare – a prime opportunity for Delta. They might have to give up gates in Los Angeles, even as they became the dominant carrier there. New York, similarly, could be an issue even as United would suddenly argue that Newark and New York are truly distinct markets.

While there are unprecedented antitrust issues for any United-American deal in the U.S. market, even getting federal ascent to an agreement wouldn’t end the antitrust nightmare in actually getting the deal done – and litigation to break up any closed agreement could continue for years to come.

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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Comments

  1. Whenever Republicans try to push a merger plan on citizens, they always say it will reduce costs and make things better and cheaper for the public. They burned us with the exact same rhetoric when Reagan removed barriers that kept banks within their own states. We ended up being scammed by banks with higher costs and ended up with a banking system that is too big to fail. Translation: Taxpayers are on the hook for any failures or having to shore up the system when there are instabilities caused by those very same banks.

  2. Americans and their elected officials should break-up more than just hypothetical behemoths. There are existing tech giants that act worse than Standard Oil. Enough is enough of these monopolies, regulatory capture, and corruption by the donor class. We are past-due for a modern-day trust-buster like Teddy Roosevelt. This 2nd Gilded Age is ending, hopefully sooner than later. Workers, consumers, and the American middle class will all be better off in a new Progressive Era. Midterms in 201 days.

  3. @ Gary — Everyone knows this merger isn’t going to happen, so can we please stop talking about it?

  4. Kirby must be smelling blood as he has worked at AA and knows their financial position. AA has lost money since covid and no signs of that changing. AA will not survive in its current form and without intervention or a merger they will go the way of PanAm within the next 5 years. So better to merge and save some of the jobs than let AA liquidate and lost all the jobs

  5. I doubt this is going to happen but breaking up an airline would be beyond messy. And probably not good for consumers.

  6. @1990 – Please tell up what positive things the Democrats are going to do when they are in power. Positive actions not we are going to do this to our current president or shut this down. The current administration is working on dismantling all of the last Administrations “positive accomplishments” – especially inflation and governmental tyranny to its citizens.

    So I ask, not expecting an answer, I ask “what positive things the Democrats are going to do”

  7. @1990 – you must live a sad, frustrating life always whining about those who have assets (while you talk about your luxury travel which is rich). I worked hard, invested well and have generational wealth. All I do now (widowed so only me) is drink, travel the world, golf and gamble. I frankly don’t care about those that can’t afford my life. That is their problem not mine. I started from almost nothing so if I can do it so can they if they actually applied themselves instead of looking for a handout or the government to solve their problems.

  8. @Michael Mainello — Yes, there will be a lot of clean-up from the mess your team has made, especially to undo nearly all of Project 2025’s unconstitutional corruption. There must be transparency and accountability for those who wrongly enriched themselves and acted unethically. Any ‘norms’ that were not explicitly legislated, should probably become in federal law.

    There also must be real economic justice for those who were denied it during this administration. As with Hungary, an opposition party has to win, first, and even then, it’ll can a while, because you there is entrenched power in media, education, corporations, the courts, and executive. Power must return to the people, all people, all backgrounds, not just those at the top.

    Let’s also address your incessant bad-faith arguments on here. You already know that each party releases a platform nearly every election. You and others often mock or ignore it (eh, too wonky!) Individual candidates also pitch good and bad ideas all the time. I don’t speak for the party or any candidates, but I know what I personally would like to see. Progressivism.

  9. “it’ll can a while, because you there is” …Oof, now you know I don’t use AI, or proof-read. Sheesh.

  10. @Michael Mainello The AG of the Nuevo USA will reveal who/what is actually buried near the first hole at Bedminster.

  11. This is fun to talk about but UA/AA tie up will likely never happen. DL/ AA would actually make more sense but in the long run it will be UA/B6 and AA/AK or worse AA / LUV. Those are my preditions. DL will likely continue to grow organically.

  12. Could we agree on undoing Citizens United? Also, anyone in power can simply enforce existing laws against insider trading, especially for elected officials; basically, get the grift and legalized bribery out of public service.

    And, I’d say, the consolidation of tech and media (traditional and social) in the hands of a few right-wing billionaires may seem great for you now, but it really sucks for nearly everyone else. Like, if you guys can abuse the FCC and other regulators for your own ‘culture-war’ nonsense, get ready for it to be used against those who pedal right-wing propaganda.

    Money and information matter. Just some initial thoughts. Lemme guess, you think everything is free and fair as-is right now, and everything I mentioned above is a communist dictatorship, eh?

  13. One more… just for fun… Pentagon is gonna have to actually pass an audit. The fact that they failed for the 8th consecutive annual audit in December 2025 is an atrocity, especially as the ‘no new wars’ guy gets us into a new forever war. This should be a bi-partisan. No one, except for military contractors, should want a fifth of our federal budget to go into the equivalent of a black hole, just because some guy selling missiles fear-mongers us all into paying for his fourth yacht.

  14. @Micheal Minello: I’m guessing “ especially inflation and governmental tyranny to its citizens.” means t-rump is showing he can exceed the levels from the last administration. You can’t seriously think the fake tanned little banned moron is succeeding at anything. Not even our “allies” support the USA anymore. When the communist leader of Italy turns on him you know you’ve failed miserably.

  15. I agree with Gene.

    It is totally premature to take such a merger seriously.

  16. @Retired Gambler — That’s the thing… with a sensible modern society, including a robust social safety net, my dignity or healthcare wouldn’t be tied to income or assets. Unless you are already a centi-millionaire, you one serious health issue from becoming bankrupt in the USA in 2026. (As for your pretend-concern for my well-being. Thanks?)

  17. “President Ocasio-Cortez”. LOL: About 8 years ago, this website was citing betting markets that there would be a President Warren.

  18. @1990 – you need to be more specific about what you believe regarding citizens united. money is literally not speech, that is true, but enabling a voice requires money. and people come together in a group to have their voices heard. that much i hope we can agree on.

  19. @Tim Avila – unless I’m missing something, AA has paid down $10bb of debt over the last five years since covid, right? They obviously still have a massive debt load and are constrained to concentrate on paying down debt above all else, but not sure that they are anywhere near financial distress. They’re just… middling.

  20. The AA/UA talk is a ploy to make the actual deal (probably JetBlue absorption) seem minor by comparison. Why isn’t that obvious to everyone who is not motivated by clicks?

  21. @1990 – More vague answers

    “Yes, there will be a lot of clean-up from the mess your team has made, especially to undo nearly all of Project 2025’s unconstitutional corruption.” Vague campaign speech, be specific because for being in office 14+ months, he has done very little but unf the Democrats policies

    “There must be transparency and accountability for those who wrongly enriched themselves and acted unethically.” That is rich from the party that blocked DOGE from trying to fix problems Transparency is not a Democrat strong point But also, more vague campaign speech.

    “There also must be real economic justice for those who were denied it during this administration.” This is a term like assault rifle. You can’t define it. The One Big Beautiful Bill reduced taxes on poor and increased them on the wealthy, but to you that doesn’t count.

    “Power must return to the people, all people, all backgrounds, not just those at the top.” Another campaign applause line, nothing specific.

    “I know what I personally would like to see. Progressivism.” (aka Communism). You should really renounce your citizenship. You love American wealth and living conditions, but envy the prosperity of others. As seen by the previous Administration, your policies devastate people and it takes more than 14 months to correct them.

  22. @Gary Leff — Alrighty! Finally, the fish are biting today. First, I, personally don’t *need* to do anything; rather, I *want* to see this area of our politics improved. I think the existing proposed federal legislation, including the For the People Act (including public financing, like we do in NY/NYC), DISCLOSE Act (for donors over $10K), and Freedom to Vote Act (standardizing rules, target dark money in Super PACs, shareholder authorizations if companies donate politically, etc.), are all a good start, but, yes, ultimately, constitutional amendment(s) would be more lasting to overturn the ‘corporate personhood’ farce. The FEC should probably also be reformed (6 member results in deadlocks; have five, 2-2 and a non-partisan tie-breaker), also actually enforce the rules (like, for once, prosecute the illegal coordination between candidates and PACs). States can do their part by updating their laws and procedures (even some ‘red’ states, like Alaska, are doing rank-choice voting already, a slightly different issue). Just some ideas for ya…

  23. @Ray – “t-rump” & “fake tanned little banned moron” Does anybody but your dog take seriously? Fortunately queen sKamala is not president because if I had said something like this about her than here speech police would try and lock me up.

    You Dems are pathetic at least @1990 tries to say something coherent.

  24. Noted. President AOC is not a prediction.

    However, according to Copilot about 10 minutes ago, the top 10 democratic candidates for President are:
    (1) Kamala Harris — Former Vice President; consistently the polling frontrunner across multiple surveys.
    (2) Gavin Newsom — Governor of California; typically polling second behind Harris.
    (3) Pete Buttigieg — Former Secretary of Transportation; regularly in the top tier.
    (4) Alexandria Ocasio‑Cortez — U.S. Representative from New York; appears in nearly all major polls.
    (5) Josh Shapiro — Governor of Pennsylvania; mid‑tier but consistently included.
    (6) Mark Kelly — U.S. Senator from Arizona; appears in multiple state and national polls.
    (7) J.B. Pritzker — Governor of Illinois; included in most national polling lists.
    (8) Cory Booker — U.S. Senator from New Jersey; polls in the lower tier but consistently listed
    (9) Andy Beshear — Governor of Kentucky; appears in several national polls.
    (10) Gretchen Whitmer — Governor of Michigan; included in multiple polling summaries.

    LOL: I think I prefer number 4 AOC over the top three. Personally, I think Senator AOC is likely. No comment whether or not I think President or Senator AOC is a good thing or not.

  25. @Michael Mainello — Oh, so more bad-faith nonsense. Got it. And telling those you disagree with to ‘self-deport’ is pretty low, and un-American. All are welcome here. It’s ‘we, the people’ in the Constitution, and ‘give me your tired, your poor…’ on the Statue of Liberty. Not, ‘go away and die.’

  26. The ‘Democrats’ are not saying this (purely theatrical) statement. It is just the animal farm of ultra-left wing simpletons who have invaded the party that make so much noise and are the Republicans best hope of retaining their majority in both houses in the midterms.

  27. @ Micheal Morono — Let’s see, how about they start with being kind to the poor, homeless, immigrants, and our allies? Next, improve healthcare access for everyone. Lastly, put people in jail (you know, rather than selling pardons to them) who commit treason, seditious conspiracy, and theft of billions from our institutions and government? That would be a great start to truly making our country good again.

  28. President AOC should just nationalize American Airlines and make it the official state carrier. Let Washington DC run it and see how they can do it. They can pay everyone a living wage and lots of paid time off. Give lots of compensation to passengers. See what happens. It could be great but also could be a disaster.

  29. @Other Just Saying — Real talk: Nah, unless there’s a meaningful scandal or has a Christie-style-early-burn-out, it’s likely to be Gov. Newsom, simply because he’s a relatively good-looking, well-spoken centrist white-dude, who can still take and give a punch. Believe me, I’d much rather have a true progressive at the top (and a 2008 wild-card can still happen, especially if the economy is hella-wrecked by 2028), but, the corporate centrists probably will not allow it. They’re still shell-shocked after running two women in a decade and losing both to ‘America’s Hit…’ what’d JD call him?

  30. @Gene — Don’t you see… Michael is ‘one of the good ones,’ and the ‘leopards won’t eat HIS face.’ It wasn’t too long ago that the Italians and Greeks were getting the ‘under-class’ treatment in the US. I’ll never understand the ‘immigrants hating other immigrants’ phenomena. It’s clearly the rich seeking to divide and conquer the working class with culture-war nonsense. In reality, it’s the 99% against the 1% (and unless you’re already a centi-millionaire, you might as well be a peasant.)

  31. @ 1990 — Sadly, I think it is human nature for every group to select one or more to look down upon.

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